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India test-fires short range variant of Agni-1; FM asks bankers to moderate interest rate to re-ignite demand; BSNL is first to get spectrum; Pvt players protest; Railways planning to install ATMs in select trains; RBI raps banks for selling NPAs at less than value of securities; FM approves 13 FDI proposals worth Rs 400 Cr, including Rs 232 Cr M/s Aster Infrastructure Ltd & Rs 97 Cr M/s KVK Energy & Infrastructure Pvt Ltd ; |
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| Dear Member, Also sending you the following files: |
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ORDER CBDT issues transfer order of two CITs ; CASE LAWS 2007-TIOL-13-ARA-IT.doc + timken story.doc Income tax - Long Term capital gains - sale of original and bonus shares - 10% rate applicable to non residents as well - Double benefit or additional relief is not a taboo under the law :Advance Ruling; 2007-TIOL-324-ITAT-DEL.doc + honda siel story.doc CIT (A) can enhance income if assessee is made aware of the proposal, formal noticve not required; R&D Expenditure 7 expenditure for launching a new car- revenue in nature; warranty expenditure - deduction to be allowed; excise duty refund passed on to customers - no income for assessee : ITAT; Income Tax - Assessee, an AOP constituted of non resident foreign companies, files nil returns for the relevant AYs with respect to works contract on the ground that it followed completed contract method of accounting thus profit/loss will be entertained in the year of accounting - A.O. initiates reassessment proceedings under explaination (2) of Sec.147 on the ground of order for AY-1998-99 - Sec.147 explaination (2) deals with cases of deemed escapement of income wherein the return is filed but assessment has not been framed and from the return A.O. comes to a belief that income has been understated or excessive claims are made but for this, belief has to be formed essentially on the basis of the return and other documents filed alongwith with it whereas in the instant case reasons recorded by A.O. for initiation of reassessment u/s 147 don't make any reference to the relevant returns but rest on an earlier assessment order thus A.O. did not assume a valid jurisdiction u/s 147 and was guided by irrelevant considerations - Assessee's appeal allowed :ITAT; Income Tax - Assessee, following mercantile system of accounting, makes a provision for sales tax on accrual basis though not paid due to liability being in dispute and claims deduction thereon - A.O. disallows on the ground that since assessee did not actually pay, it cannot make a provision for the same and moreover this court had held that sales tax is not payable by the assessee and the same wasn't stayed by the S.C. - The moment there is a sale or purchase of a commodity subject to sales tax, liability to pay tax arises which doesn't depend on actual payment of tax and since assessee was following mercantile system of accounting it had to make a provision for its liability and the liability did not cease to be a liability merely because assessee had disputed it - There will not be any prejudice caused to Revenue as under Sec.41(1) any benefit obtained by assessee in respect of trading liability by way of remission or cessation thereof can be charged to tax as profit or gain from business in the year of remission - Revenue's appeal dismissed on this count: DELHI HIGH COURT; Income Tax - Assessee, a sugar factory, advances some loans to harvesting and transport contractors at a nominal rate of interest out of borrowed funds at higher rate of interest - AO disallows the differential rate of interest - Tribunal allows the same - Just because some loans which are ultimately adjusted against the final payments to the contractors, are advanced out of the borrowed funds it cannot be treated as diversion of funds for non-business as it is commercially expedient to help contractors tide over difficult situations and carry on with the supply the sugarcane which constitutes the core business of the assessee - Deduction is allowable and Revenue's appeal dismissed Assessee also claims deduction for bakshish given to labourers of contractors - AO says since such an obligation is not a part of the tripartite agreement between the assessee, the State Govt and the contractors, it is not allowable - Tribunal allows - Since giving Bakshish is an old tradition in the State of Maharashtra and it is given as an incentive to workers to work under adverse climatic conditions and if workers leave the work during the summer, it may hurt the business interests of the assessee - It is very much allowable deduction - Revenue's appeal dismissed : BOMBAY HIGH COURT; |
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ORDER CBEC issue transfer order of Addl/JC + AC/DC order ; Education cess - Notification grants rebate - Board amends Notification inserting education cess as duty of excise - Clarificatory - Rebate is available to the assessee under the basic Notification even before the amendment came into effect - Since education cess was levied as duty of central excise, no separate notification required for providing rebate as per Notification No 40/2001-CE (NT) and 19/2004-CE(NT) - Assessee's appeal allowed : HIGH COURT; Central Excise - clandestine clearances - it is an admitted case of collusion between the processing unit and the merchant manufacturers which resulted in unaccounted production and clandestine removal of the excisable goods without payment of duty and the intention to evade excise is very clear - There is full justification for imposition of penalty equal to the duty under Section 11AC : CESTAT; Central Excise - Cenvat Credit - refund of accumulated credit due to exporting the final products - The credit lying in RG-23 account accumulated arising out of exports is akin to credit in the PLA - After introduction of compounded levy scheme, the assessee was not in a position to utilize the credit - Commissioner (Appeals) order that the refunds were not admissible is not legally sustainable : CESTAT; Transformers supplied to BARC - eligible for exemption under Notification 10/97 CE -issue no longer res integra - Tribunal decision in Andrew Yule and Danke Products followed. Notification 3/2001CE - Transformers neither Biogas plant nor engine, at the most they can be considered as parts - since parts not covered under the notification, benefit not available - Modvat reversed by treating such clearances as exempted to be restored : CESTAT; Branded goods - Appellant affixing various free flowing brands "Amar", "Jyoti", "Zenith", "Texflow", "Bison", "KRI" & "Super" etc based on customers requirements depending upon which brand was running successfully in that region - brand names not owned by any person - if the brand name is not owned by any particular person, use thereof will not deprive the unit of the benefit of the small scale exemption notification - Board Circular 52/52/94-CX dated 1.9.94 relied upon : CESTAT;
SERVICE TAX SECTION 2007-TIOL-1507-CESTAT-MUM.doc + finance bill story.doc Explanation to Clause 82 of the Finance Bill, 2005 comes to rescue - Appellant not liable to interest / penalty : CESTAT; ST - Cenvat credit on outward freight - Revenue denied it as it was taken on the transport service after duty paid removal of goods - Whether the freight formed part of the AV is not verified, the issue remanded : CESTAT;
CUSTOMS SECTION NOTIFICATION DGFT allows EoU/STP/BTP units to subcontract part of production abroad and send intermediate goods without permission; Restriction on export of onions; Format for goods to be sent abroad for jobwork; CASE LAWS 2007-TIOL-1505-CESTAT-AHM.doc + depb story.doc Export overvaluation for undue DEPB benefit - CESTAT by majority sets aside the denial of DEBP: CESTAT; There is no dispute that the conditions as laid down in the DGFT Notification dated 11.9.2006 have been complied with by the importer - So, the contention of the Revenue to deny the benefit of exemption notification on the ground that shipment had not been effected prior to 2.6.2006 is totally unwarranted, inconsistent and extraneous : CESTAT; |
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Silver jubilee of CESTAT - TIOL greets the Great Institution; Emergence of 'hidden tigers' on Pan-India Revenue Map cheers CBDT! Aurionpro Solutions invests in PaySimple, Hind Rectifiers signs pact with German Co ; OECD indicators suggest moderation in economic expansion in India, China but improved outlook for Russia ; i-flex Solutions increases its stake in Castek to 100%; Hexaware wins Euro 5 mn IT contract in Germany ; |
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